This invention relates to a nestable paperboard food carton that converts into a two-compartment serving tray. Many food products, such as sandwiches, hamburgers, and the like, are packaged in paperboard cartons and are sold by fast service restaurants. Since fast service restaurants generally have limited storage space, it is desireable that the unfilled cartons be nestable to save storage space. Since fast service food products are often eaten away from the restaurant premises, it is also desireable that the closed carton provide some degree of protection against heat loss and debris for the food product. Furthermore, since fast food products are generally to be eaten without plates, it is desireable for such food cartons to be able to act as serving trays, and since the sandwiches are frequently purchased with other food items such as french fried potatoes, it is especially useful for the trays to form two serving compartments.